How to start a bonnet business

Update: January 2, 2024

By: Tom Macken

Launching a bonnet business

A bonnet business specializes in the production and sale of hair bonnets and associated services. These protective coverings are worn to secure and safeguard hair from harm. This market has significant growth potential, with estimates projecting it to reach $1.3 billion by 2025. Find our guide on staring your bonnet business below.


What is a bonnet business?
8 tips for opening a bonnet business
Training needed to open a bonnet business?
Regulations for opening a bonnet business

What is a bonnet business?

A bonnet business specializes in creating, producing, and selling various types of head coverings. These coverings, commonly made of fabric, are primarily worn by women to safeguard their hair from elements like dust, wind, and sunlight. Bonnet businesses offer a range of styles, materials, and colors to cater to diverse customer preferences.

They may also provide customization options like embroidery or monogramming. While some bonnet businesses operate exclusively online, others may have physical stores or collaborate with third-party retailers. Additionally, these businesses may expand their product offerings to include complementary items such as hair accessories and clothing.

8 tips for opening a bonnet business

1. Form your Legal Business

When setting up a bonnet business, you’ll need to think about what business structure will work best, including registering your company with the appropriate authorities, both locally and nationally. 

Many would-be company owners struggle to make sense of the differences among an LLC, a sole proprietorship, a partnership, and other business structures, much alone settling on one. 

A company formation service can help you determine the best business structure for your hair bonnet company based on factors like the level of liability protection you require, the laws of the state in which your company will operate, tax filings requirements and the type of license you will need to legally sell your service and products. 

In the case of bonnet businesses, we advise you to choose one of these legal forms:

  • An LLC might have a single owner or several owners.
  • If your company is not incorporated, you are considered a sole owner.

In the U.S, limited liability companies (LLCs) are favored over sole proprietorships because their owners are shielded from personal liability for corporate debts and obligations.

Naming your hair bonnet company

The process of naming your Hair Bonnet enterprise may be a lot of fun. Create a list of terms that best describe your company’s values and goals. Then, put those words to use in creating new, meaningful two-word and three-word combinations. 

Try mixing and matching words that signify the same thing to hear what you come up with. Last but not least, check online to see whether the company name you want to use has already been taken.

2. Setup your Business Bank Account 

Depending on your needs and the amount of money you want to deposit, there are different kinds of business accounts you can setup for your bonnet business including:

  • Checking Accounts: The most typical form of business bank account. Opening a company checking account is simple and provides a number of advantages. Having a bank account means you may quickly and simply add or remove funds as your needs change. You may use your checking account to pay bills and vendors by writing checks.
  • Savings account: With the return you may receive on your savings, it’s a terrific way to build up a rainy-day fund for your hair-bonnet company. Savings accounts, on the other hand, may have withdrawal restrictions and provide lower interest rates than checking accounts.

Before deciding on a bank account, it’s a good idea to do a comparison of different business banks for features and fees, including FinTech banks with very competitive benefits of no monthly fees, no minimum balances and an unlimited number of transactions compared to traditional high street bank offerings. 

3. Organize Your Accounting, Taxes & Credit Card reader

Accounting & Taxes

Setting up a reliable accounting system will allow bonnet business owners to keep tabs on all kinds of financial transactions from sales (income & invoicing), purchases (expenditure), liabilities (bank loan funding) to taxes due to the IRS or similar. 

The books for your hair bonnet business can be organized in a few ways:

If you choose to handle things on your own, pick a system that is intuitive and simple to use. When your accounting system is ready, you can begin recording your earnings and spending. If you want to save money, you can now see exactly where it’s being spent meaning future budgeting is simplified as a result.

Bonnet business owners should be careful to maintain a consistent schedule of accounting maintenance. This calls for putting time in your calendar on a regular basis to check your books and make any necessary changes. While this may appear to be a lot of extra effort, it will ultimately save you time and energy.

Credit Card reader

Bonnet businesses will of course need to take payment for the services and products they provide. Having access to a low-cost credit card machine is essential to ensure your business can take payment from your customers in a quick and easy manner. 

A card reader such as the Payanywhere Smart Terminal offers a simple pricing model, next day funds in your bank account, integrates with your Quickbooks accounting software and can also provide valuable data insights into sales trends, inventory management and customer behavior.

4. Launch your bonnet website & social media

A stunning site for your fresh hair bonnet company can be created very easily via:

  • DIY building the business website yourself using a Page Builder or
  • Hiring a qualified web designer to build effective landing pages that can drive new leads for your business using high-quality photos, videos, and other visual components that are in keeping with your brand’s aesthetic.

Having a slick, mobile-optimized website has numerous benefits for any business including: 

  • Attracting new customers 24/7, showcasing your services and products at any time 
  • Credibility, making it easier to attract and retain customers 
  • Online presence for Google searches actively looking for bonnet services in your area
  • Customer engagement by helping to engage with customers regarding business info, photos, videos, feedback forms as well as contact forms
  • Branding A website can help businesses establish and reinforce their brand identity, by incorporating their logo, color scheme, and other branding elements into the design.

Social Media

Social media including Instagram, TikTok, Facebook and Twitter are powerful tools for a bonnet business as they can increase your business visibility, ability to engage with customers, establish and reinforce brand identity, and gather valuable data insights to improve marketing strategies.

Platforms such as Instagram and Facebook alone have billions of active users, providing a bonnet business with an opportunity to increase its visibility and reach a wider audience.

Direct Marketing can also be used in the form of Facebook and Google online ads on these platforms to market services and products to potential customers. Bonnet businesses can use targeted ads to reach specific demographics and interests and use the campaign data to make informed decisions about your next marketing campaigns to drive more leads.

5. Create a Brand Identity for your bonnet business 

To differentiate your company from your competitors, you’ll need to take some time to prepare and concentrate on how you want your consumers to feel & develop a unique personality for your hair bonnet business. From the logo’s design to the brand’s color scheme, there is a lot to think about. 

A unique and memorable logo for your business can be professionally created by a talented Graphic Designer from a Logo Design service. 

Hiring a logo design service can save a business time and money by eliminating the need to spend hours researching and creating a logo and a high-quality logo can be designed quickly and efficiently.

The steps to think about include: 

  • 1). Establish the vision and values that guide your hair bonnet company. What are you hoping to accomplish with your company? When people consider your hair bonnet brand, what do you want them to feel? 
  • 2). Go with a color palette that conveys who you are as a business. Colors say a lot regarding a product or service. If you’re stuck for inspiration, research competing products in your field to discover what colors they’re using.
  • 3). Create a distinctive logo for your hair bonnet line. This is the first thing that customers will associate with your brand, therefore it has to be striking. Get in touch with an expert designer to develop a logo that captures the essence of your company while also looking great.
  • 4). Make sure your branding is the same across all platforms. This should include your website banners to your business cards, your logo and color palette are always consistent with your brand. As a result, your brand’s identity will be strengthened and your company’s name recognition will increase.

Making a name for your hair bonnet company is unlikely to be as difficult as you would think. Creating a brand that sticks with consumers requires zeroing down on the company’s raison d’etre and core principles. A distinct identity for your hair-bonnet business may be developed with some forethought and imagination. 

6. Develop a Business Plan

A well-developed business plan is a crucial tool for any entrepreneur looking to start a successful business. The plan should include your bonnet company’s mission and vision, target audience, product offerings, marketing and sales strategies, and financial projections. The business plan should be regularly reviewed and updated to ensure that the business is on track to meet its goals.

A business strategy should cover the following:

  • Market Analysis: An in-depth look at how the market for hair bonnets is doing now and how it could grow.
  • Business Summary: A description of your new bonnet business, including its purpose, goods or services, and target market.
  • Business Strategy: A thorough plan that explains how the business is going to reach its goals.
  • Financial Strategy: How much money you expect to make, spend, and need for cash.
  • Marketing Plan: How the business will sell itself and what strategies and methods will be used.
  • Operations: This is an account of the business’s working methods and practices.

7. Get Financing for your Hair Bonnet Business

For your bonnet business, you can use personal savings or decide to use financing solutions for your new venture and you’ll have different options to consider which may work best: A bank loan, crowdfunding, investors or something different. 

A clear, detailed, and comprehensive business and financial strategy is usually expected by banks or other partners from whom you seek for funding. To launch a firm, you could require funding from a bank, credit union, or the Small firm Administration (SBA). 

The amount of money needed to start a bonnet business can vary depending on factors such as the location, production costs, marketing expenses, and inventory. On average, starting a bonnet business can require an initial investment of anywhere from $3,000 to $50,000. 

8. Business setup essentials

There are a number of different considerations which bonnet businesses should keep in mind when setting up shop including:

Products and Services

Delivering superior products and services is vital for attracting and retaining customers in the competitive hair care industry. Bonnet businesses should prioritize high-quality materials, designs, and patterns tailored to their target audience.

They should focus on:

  • Bonnets: The core offering of a bonnet business. Bonnets are made from comfortable fabrics like satin or silk, available in various styles, colors, and sizes to suit different hair types.
  • Custom Bonnets: Providing customization options for customers to choose their bonnet’s color, fabric, and design, catering to specific preferences and unique hair needs.
  • Wholesale Bonnets: Offering bulk orders of bonnets to wholesale customers such as beauty supply stores, salons, and online retailers.
  • Bonnet Accessories: Supplementing bonnets with accessories like headbands, scrunchies, and hair clips.
  • Education and Resources: Providing educational materials on the benefits of bonnets for hair care and offering tips and guidance on selecting and maintaining bonnets.
  • Brand Merchandise: Optionally, offering branded merchandise like t-shirts, hats, or bags to enhance brand promotion and generate additional revenue.


To operate a bonnet business successfully, necessary inventory items include:

  • Bonnets: A variety of bonnets in different sizes, styles, and colors to meet customers’ diverse needs.
  • Packaging Materials: Boxes, bags, and labels for packaging and shipping bonnets to customers.
  • Fabric and Sewing Materials: Stock of fabrics and sewing essentials like thread, needles, scissors, and cutting mats for creating custom bonnets.
  • Storage and Display Items: Shelving, bins, hangers, mannequins, or hooks to organize inventory and showcase bonnets for sale.
  • Shipping Supplies: Packing tape, bubble wrap, and shipping labels for efficient shipment of bonnets.


Several factors influence the choice of a bonnet business’s location:

  • Visibility: A busy area with high foot traffic enhances customer attraction and sales. Proximity to popular shopping centers or well-trafficked locations boosts brand exposure.
  • Target Market: Choose a location near the target market, such as a college campus for student-oriented sales.
  • Competition: Research the competition and select a location with fewer similar businesses to avoid oversaturation.
  • Rent and Lease Costs: Consider the affordability of rent and leasing space to ensure it aligns with the business budget.
  • Convenience: Opt for a location that is easy to find, accessible by public transportation, and offers ample parking for customer convenience.


Determining the pricing for a bonnet business involves considering factors like material costs, design complexity, and target market. Here are some tips:

a) Analyze competitors’ pricing. b) Calculate costs and ensure a reasonable profit margin. c) Consider the target market’s disposable income. d) Offer tiered pricing with basic, standard, and premium options.

Customer Service

Building brand loyalty and attracting repeat customers relies on excellent customer service. Bonnet businesses should prioritize responsiveness, resolving issues promptly, and enhancing the overall customer experience, from easy booking to packaging and delivery.

Is training necessary to start a bonnet business?

Although not mandatory, training can greatly benefit entrepreneurs aspiring to establish a thriving bonnet business. It offers valuable insights into technical aspects, such as fabric selection and design, ensuring high-quality products for diverse hair types.

Furthermore, training equips entrepreneurs with essential business management skills, including marketing, sales, customer service, and financial acumen, vital for long-term profitability and success.

Regulations for opening a bonnet business?

Regulations governing the establishment of a bonnet business vary across countries and regions. However, the following guidelines are typically applicable:

  • Business registration is a crucial step, involving obtaining a business license and registering for taxes in compliance with local authorities.
  • Adherence to health and safety regulations is essential. Bonnet businesses must ensure that materials utilized in production are safe and non-toxic, prioritizing the well-being of customers.
  • Consumer protection regulations necessitate accurate information disclosure about bonnet materials, ensuring their suitability for intended use, and implementing transparent refund and return policies.
  • Intellectual property (IP) regulations come into play if copyrighted or trademarked materials are incorporated in bonnet designs. Securing licenses or permissions is necessary to comply with IP laws.
  • Environmental regulations must be observed, especially when employing materials that pose harm to the environment. Proper waste disposal practices are essential to ensure responsible and eco-friendly operations.


How to start a hair bonnet business? 

You can establish a hair bonnet business through a professional company formation service. Offer premium bonnet products and services catering to customers seeking top-notch comfort and quality for their hair care requirements.

How much does it cost to open a bonnet business?

Starting a bonnet business can involve initial expenses ranging from $3,000 to $50,000, influenced by factors such as inventory levels, rental location, labor needs, and additional associated costs.

Can you open a bonnet business without a qualification?

No specific qualification is necessary to launch a bonnet business cafe. However, acquiring training in crafting quality bonnets and developing essential marketing and business skills is advisable.

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Tom is the founder of He reads the offers, deciphers the details including features, pricing, included services and more to find you the best products and services.

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